Part three quiz

Which of these is the best definition of economic growth?

• An increase in an economy’s employment level

• An increase in an economy’s population

• An increase in an economy’s productive capacity

• A reduction in an economy’s level of imports

Which of the following is most likely to reduce economic growth?

• An increase in exports

• A stable price level

• High taxes on profits

• Low interest rates

The diagram shows what has happened to a country’s real national output over a ten-year period. Which statement must be correct?

• Real national output was higher in Year 10 than in Year 0

• Real national output reached its highest in Year 5

• The price level was higher in Year 10 than in Year 0

• Unemployment was less in Year 10 than in Year 5

Most coal mines in the UK have closed down. What type of unemployment has this caused?

• Cyclical

• Frictional

• Seasonal

• Structural

The table gives data for two countries. Which of the following statements about the claimant count measure of unemployment is correct?

• It cannot be calculated without further information

• It is higher in country Y than in country Z

• It is higher in country Z than in country Y

• It is the same in both countries

John chose to leave his job as a teacher and could not find another job for two months. Which of these statements is true about John during the time he was out of work?

• He was included in the Claimant Count

• He was seasonally unemployed

• He was still part of the workforce

• He was structurally unemployed

Heidi earns £20,000 after all deductions. She has £50,000 in a bank account that pays no interest. This means

• her income is £50,000 per year

• her income is £70,000 per year

• her wealth is £50,000

• her wealth is £70,000

Using the information in the table below, what is the value of Trevor’s income?

• £100540

• £50540

• £35040

• £30040

Which of the following options only contains items classified as wealth?

• Interest, profit, shares

• Profit, property, rent

• Property, savings, shares

• Rent, savings, state benefits

If the rate of inflation is decreasing, but still positive, the price level will:

• fall

• rise

• stay the same

• become negative